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Where has the funding has come from to replace many heating systems with electric heating and in which Annual Business Plan this money was included

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WRITTEN QUESTION TO THE MINISTER FOR HOUSING BY DEPUTY J.A. MARTIN OF ST. HELIER

ANSWER TO BE TABLED ON TUESDAY 1st MARCH 2011

Question

"Can the Minister identify where the funding has come from to replace many good working heating systems with electric heating and state in which Annual Business Plans this money was included? Would he also give the overall cost for all the estates that have been converted to electricity and also the projected cost for the estates that still need to be done?"

Answer

1,799 heating systems will be replaced during the project. A significant number of these systems were already past their replacement date. In respect of many others tenants could not afford to run them because of the volatility in the price of oil and gas. Annual servicing and repair costs required the commitment of significant amounts of revenue every year.

The funding for the electric heating replacement project during 2010 came from two sources. The Fiscal Stimulus Fund provided £2,118,000 and the balance of the spend to date came from the Housing Department's revenue budget. Future funding will come from the Department's revenue budget. The programme and the costs associated with it were set out in the 2009, 2010 and 2011 Annual Business Plans.

The cost of works to date is

Mains infrastructure Installation and other works Total

The projected cost to completion is an additional

Mains infrastructure Installation and other works Total


£834,000 £2,612,000 £3,446,000

£835,000 £4,263,000 £5,098,000

The heating switch programme is being run in tandem with other projects to upgrade other building elements such as replacing windows and doors, improving loft insulation and adding either external wall or cavity wall insulation.

Completion of these programmes will deliver significant benefits for tenants including:-

  • Improved reliability (the project includes the replacement of copper hot water cylinders with stainless steel items and a full electrical system check which includes the replacement of smoke detectors)
  • Individual control over heating and hot water provision whereas in the past operating times were determined by the Department
  • Opportunities to directly benefit from energy saving measures. Clearly each tenant's electricity bill will be dependant upon their individual energy usage.
  • Greater stability in energy prices
  • Potential cost savings (all the systems run on off peak tariffs and the replacement project includes other energy efficiency measures such as increasing levels of loft insulation)
  • A single energy bill which is more transparent